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Alliance Resource (ARLP) to Post Q4 Earnings: What's in Store?

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Alliance Resource Partners, L.P. (ARLP - Free Report) is scheduled to release fourth-quarter 2023 earnings on Jan 29, before market open. The firm delivered a negative earnings surprise of 11.9% in the last reported quarter.

Let’s see how things have shaped up before the upcoming earnings announcement.

Factors to Note

Alliance Resource Partners’ Appalachia operating expense per ton sold is likely to be 8-10% higher during the fourth quarter of 2023. The increase in expenses is due to ongoing development at Mettiki and the scheduled longwall move at Tunnel Ridge. This is likely to have affected margins.

The firm’s fourth-quarter earnings are likely to have benefited from multi-year contracts with blue-chip utility companies.

Lower realized oil and gas commodity pricing in the fourth quarter is likely to have offset the increases in coal royalty revenue per ton like in the previous quarter.

Expectations

The Zacks Consensus Estimate for fourth-quarter revenues and earnings per unit is pegged at $672.5 million and $1.14, respectively, indicating year-over-year decline of 4% and 30%.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Alliance Resource Partners this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

 

Earnings ESP: The company’s Earnings ESP is -10.13%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, ARLP carries a Zacks Rank #4 (Sell).

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat for the to-be-reported quarter.

Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Feb 9, before market open. It has an Earnings ESP of +6.12% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for PAA’s fourth-quarter earnings is pegged at 37 cents per unit. The firm delivered an average earnings surprise of 18.3% in the last four quarters.

Energy Transfer (ET - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 14, after market close. It has an Earnings ESP of +15.39% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for ET’s earnings is pegged at 29 cents per unit. The Zacks Consensus Estimate for sales is pinned at $23.6 billion, indicating a year-over-year increase of 15%.

ONEOK Inc. (OKE - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 26, after market close. It has an Earnings ESP of +20.78% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for ET’s earnings is pegged at $1.16 per share. The Zacks Consensus Estimate for sales is pinned at $5.5 billion, indicating a year-over-year increase of 10.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 


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